Responsible Investment at SFMC

SFMC sees responsible investment as fundamental to its business – key to delivering long-term investment performance for our investors. We therefore integrate environmental, social and governance (ESG) factors into all stages of our investment process, including investment decision making, management of the fund, and monitoring and reporting on the portfolio companies.

SFMC is the first company in Palestine to become a signatory to the United Nations Principles for Responsible Investment (PRI)

Our ESG Approach

We have an ESG policy in place which establishes robust processes for assessing and monitoring ESG risk. All our team is committed to following the ESG Policy which also provides guidelines for SFMC portfolio companies on integrating ESG considerations into their commercial activities.

In January 2018, we became signatories to PRI. These voluntary principles provide a practical framework for incorporating ESG issues into mainstream investment decision-making and ownership practices.

Responsible investment, in SFMC’s definition, is a process that takes full account of the environmental, social and governance factors that might materially impact the value of our investments or that conflict with our corporate values. Our policy therefore covers a broad range of ESG issues – from climate change to labor rights to social welfare – and is implemented across our whole investment process, not just the investment decision phase.

We strongly believe that private equity’s model, which emphasizes investor engagement and a long-term horizon, is well positioned to create value through responsible investment.

The PRI’s six principles of responsible investment

1.
We will incorporate ESG issues into investment analysis and decision-making processes

2.
We will be active owners, and incorporate ESG issues into our ownership policies and practices

3.
We will seek appropriate disclosure on ESG issues by the entities in which we invest

4.
We will promote acceptance and implementation of the Principles within the investment industry

5.
We will work together to enhance our effectiveness in implementing the Principles

6.
We will each report on our activities and progress towards implementing the Principles

We expect our responsible investment policy to be in harmony with our corporate values – which are the touchstone for everything we do – and we therefore monitor its implementation to check that this alignment is maintained in practice.